Boris Johnson’s decision is still weighing on the Pound
In the early hours of today’s trading session we saw the value of GBP continue its slide, this time falling as low as $1.3962 against the US Dollar.
The Pound has had a terrible start to the week with popular UK politician Boris Johnson aiding its decline after offering his support for the ‘Leave’ camp over the weekend. We’ve seen a steady decline in the value of the Pound since the back-end of last year due to a number of reasons but right now it seems that the upcoming EU Referendum is what’s weighing heaviest on Sterling’s waning value.
Mark Carney remains neutral
Bank of England governor Mark Carney this week accepted that uncertainty surrounding the UK’s future is negatively affecting the value of the pound but he refused to offer his support for either the ‘Leave’ or ‘Remain’ camp, he also added that the Bank Of England is preparing for the aftermath of the EU referendum although this has done little to ease investors’ fears with sterling this morning hitting new 7 year lows.
Bearing in mind that leading up to the Scottish referendum we saw Sterling lose 7 cents against the dollar in 3 months, I’m not expecting anything dissimilar to happen this time round either. Therefore anyone with Euros or Dollars to buy using Sterling should consider making that transaction sooner rather than later as history suggests we can expect further weakness in the pound leading up to the election, especially in these current market conditions.